British Pound To Be Left High and Dry Vs Euro As Interest Rate Tide Recedes Says JPMorgan
“Our highest conviction macro trade in recent weeks has been short GBP as we felt that UK rate hikes were overpriced given the weak starting point for UK growth and the existential Brexit shock that continues to dominate the medium-term outlook,” says Daniel Hui, a foreign exchange strategist at JPMorgan. The foreign exchange team at the US bank say the UK economic backdrop made it difficult enough as it was, in September, to justify embarking on an interest rate hiking cycle but observe that the economy has shown signs of slowing further since then. * Bank rates according to latest IMTI data. British Pound To Be Left High and Dry Vs Euro As Interest Rate Tide Recedes Says JPMorgan.